Last Updated: 14 Nov 2024
Executive Summary
Treace Medical Concepts Inc. (TMCI) is an orthopedic medical device company specializing in foot and ankle surgeries. Despite a strong industry tailwind, the company faces challenges with profitability. The stock currently trades at $7.92, below the analyst target price of $7.5.
Company Overview
Treace Medical designs, manufactures, and markets biological devices for foot and ankle surgeons in the United States. The company has a strong product portfolio and a dedicated customer base. However, it has recently experienced a decline in profitability due to rising costs and increased competition.
Fundamental Analysis
Revenue: Revenue for the latest quarter was $202.9 million, a 10.6% increase year-over-year.
Earnings: The company reported a net loss of $54.6 million for the latest quarter, resulting in an EPS of -$0.99.
Profitability: Treace Medical has been struggling with profitability, with a negative profit margin of -0.303% and an operating margin of -0.336%.
Balance Sheet: The company has a strong balance sheet with $168.5 million in assets and $120.9 million in liabilities.
Technical Analysis
52-Week High/Low: The stock has traded between $3.92 and $15.98 in the past 52 weeks.
Moving Averages: The stock is currently trading below its 50-day and 200-day moving averages.
Support/Resistance: Key support levels are at $5.54 and $3.92, while resistance levels are at $7.5 and $15.98.
Short Term Outlook
In the short term, Treace Medical faces headwinds due to rising costs and increased competition. The stock is trading below its moving averages and may continue to decline in the near term.
Long Term Outlook
The long-term outlook for Treace Medical is more positive. The company has a strong product portfolio and a dedicated customer base. If the company can improve its profitability, it has the potential for significant growth.
Analyst Recommendations
Analysts are currently rating Treace Medical as a "Hold." Six analysts have a "Hold" rating, while none have a "Strong Buy," "Buy," "Sell," or "Strong Sell" rating. The average analyst target price is $7.5.
